As a Canadian
organization looking to expand, these kinds of agreements with Chile brings
about positive effects for the company. The relationship between the two are
abundant and growing in terms of FDI and Gross Domestic Product (GDP) according
to Dylan Gowan’s Canadian Trade and Investment Activity. (Gowans, 2016) The
bilateral trade has little or no issues up to this date. Having to investment for
the long term, Canada and Chile’s 20 years in the FTA is an indication that the
agreement is strong and firm.

Due to
this, both countries have advantages from the amendments since it was agreed
and arranged to meet the needs between the two nations involved. It improved
and utilized resources that is beneficial equally. Companies who are involved
in importing and exporting throughout Canada and Chile are on the positive note
with CCFTA’s regulations. Chile being Canada’s 26th largest
merchandise trade partner and 34th largest service trade partner,
Canadian companies still seek to expand their business in the south. Both in goods
and services, Canada-Chile’s economic bond are strong. For Canadian services with
Chile, the exports and imports for 2016 were $236.0 million and $133.0 million
respectively, while for merchandise trade, the exports were $790.3 million and
the imports were $1.9 billion for 2016 as well. (Gowans, 2016)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

In
CCFTA, amendments on Technical Barriers to Trade (TBT) were made on 2014 and also
in 2017. (Foreign Affairs and International Trade Canada, 2014) According to
World Trade Organization, TBT aims to ensure that technical regulations,
standards, and conformity assessment procedures are non-discriminatory and do
not create unnecessary obstacles to trade. (World Trade Organization) This
enhances market admission for Canadian products, such as chemical products and
plastics, base metals, machinery, and appliances. (The Global Business Network)
Thru this as well, both parties recognize that a wide range of mechanisms exist
to support regulatory harmonization and to eliminate unnecessary technical
barriers to trade between parties, including mechanisms that promote
harmonization of national standards with relevant international standards,
except where inappropriate or ineffective; greater use of relevant
international standards, guides, and recommendations as the basis for the
Parties’ respective regulations and conformity assessment procedures; and
equivalence of technical regulations of the other party. (Government of Canada,
2017)

This
trade between the two countries brought numerous benefits to both of them.
Issues may arise and some may have negative impacts on its agreement but it may
also be the other way around. Just recently, last July 5, 2017, Global Affairs
Canada reported that Honourable Francois-Philippe Champagne, Minister of
International Trade, announced the addition of a chapter on trade and gender to
modernize the 20-year-old CCFTA—the first of its kind for any G20 Country.
(Global Affairs Canada, 2017)

            William Dymond pointed out in his study that Chilean
economy has a strong similarity to Canada’s: a small open economy deeply reliant
on export markets, prepared with sufficient mineral and agricultural resources,
and a small population. More on Dymond’s study, Canadian and Chilean trade
policies are said to be largely congruent. Like Canada, Chile, while remaining dedicated
to the multilateral principles of the World Trade Organization (WTO), has progressively
focused on the cooperation of bilateral trade agreements. (Dymond, 2007. pg.
161)

            The main focal point for the Canada-Chile partnership is
the CCFTA. According to Geoff White, senior trade commissioner with the Canadian
Trade Commissioner Service, the agreement has been tremendously valuable for
both Canada and Chile. It is said that it is the cornerstone of their bilateral
commercial relationship. He also added that the FTA has been central for trade,
and it’s also been very substantial for investment. Because the Foreign Direct
Investment (FDI) into Chile stood at $16.5 billion in 2016, it became Canada’s
top investment destination in South America and 11th worldwide. In a
study conducted by Global Affairs Canada’s Office of the Chief Economist titled
Economic Impact of the Canada-Chile Free Trade Agreement, it was determined
that the increases from the contract in Canada’s overall economic welfare were
approximately $250 million annually in 2013. (Canada and Chile: A Great Deal to
Celebrate, 2017)

            Another one that is coming under way is the Trans-Pacific
Partnership (TPP). It is an FTA between United States, Canada, Mexico and 9
other countries. Like most other agreements, it removes tariffs on good and
services and enforces reciprocal trade quotas. It also includes financial
services, telecommunications, and food safety standards. But before it could be
implemented, since it was signed last February 4, 2016, Donald Trump decided to
withdraw United States in the process. In light of this, the remaining
countries still decided to move forward without the US. (Amadeo, 2017)

            Both countries have existing trade agreements that allow
them to import and export to the respective countries. One of them is
Canada-Chile Free Trade Agreement (CCFTA) which was signed on December 5, 1996,
and followed the implementation on July 5, 1997. For Canada, with a South
American Country, it was the first free trade agreement (FTA). While for Chile,
the agreement was their first wide-ranging free trade with any country. The
CCFTA involves trade in goods and services, as well as the joint investment
relationship. It has brought benefits to both countries since it was launched. (Government
of Canada, 2017)

                Canada
and Chile have intensified and developed strong political, economic, social,
environmental, and people-to-people ties over the past 10 years, achieving a
valuable partnership. It was also noted that Canada-Chile commercial
relationship is varied and rising. Both countries have a common focus, economic
and social development, they have maintained. It was fixated on equity,
security, and prosperity for all of its people. (Embassy of Canada in Chile,
2017)

Author